If you buy 2 year old used cars instead of buying new and then drive them for 5 years you will save a significant amount of money over time. If you bought used cars instead of new then you could save $391k over a 40 year period. I showed the break down here. I assumed a 10% investment return for sake of example. Note: This is just a rough estimate, I do not account for increased maintenance costs with used cars or higher insurance premiums on new cars.
Imagine how much more comfortable you would be in retirement if you had that extra $391k in retirement. Is a slightly newer car really worth it?
More on buying used cars:
- FreeMoneyFiance: Saving on a car purchase, buy used.
- Used Car Benefits
- The Benefits of buying used.
- For more detailed comparison of total costs of ownership try Edmunds True Cost to Own ratings